ECB's Lane: Euro's rise dampens inflation outlook

Dhwani Mehta FXStreet

“The recent appreciation of the euro exchange rate dampens the inflation outlook,” said the European Central Bank (ECB) Chief Economist Phillip Lane in a blog post just a day after the ECB left policy unchanged.

Additional quotes

“The scale of upward revision in core inflation has been significantly muted by the appreciation of the euro exchange rate.”

“It should be abundantly clear that there is no room for complacency on inflation.”

“Headline inflation to remain negative for the rest of the year.”

“Governing council stands ready to adjust all of its instruments accordingly.”

Market reaction

EUR/USD holds the bounce from 1.1810 on Lane's jawboning. At the press time, EUR/USD gains 0.14% to trade at 1.1836.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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